HealthSpring plans $400 million credit facility with Leon purchase

By Sara Rosenberg

New York, Aug. 13 - HealthSpring, Inc. is planning on getting a new $400 million senior secured credit facility to help fund its acquisition of Leon Medical Centers Health Plans, Inc., company officials said recently in a conference call.

Goldman Sachs is the lead bank on the deal.

The facility consists of a $100 million revolver that is expected to be largely unfunded at closing and $300 million of funded loan debt.

HealthSpring is buying Leon, a Miami-based Medicare Advantage HMO with over 25,700 members, for $355 million in cash at closing.

The transaction is expected to be completed before the end of 2007, subject to customary conditions, including federal and state regulatory approvals.

HealthSpring is a Nashville, Tenn.-based managed care organization whose primary focus is the Medicare Advantage market.

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